Coincheck Group Reports Q1 Fiscal 2027 Revenue Growth, Net Loss

Coincheck Group (NASDAQ: CNCK ) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

3 billion yen for Q1 fiscal 2027, driven by higher transaction and institutional revenues. The company is focusing on a unified business model with three strategic pillars: Crypto-as-a-Service, Asset Management, and Custody, aimed at unlocking the Japanese crypto market. Significant partnerships include Mercari for Crypto-as-a-Service, KDDI's equity investment, and Credit Saison for expanding crypto access through loyalty programs. Asset Management has gained traction with mandates from Dynamic Funds in Canada and a portion of Bhutan's Bitcoin treasury.

The regulatory environment in Japan is evolving favorably for Coincheck, with potential future benefits from new frameworks and tax reforms. 18 billion yen for the quarter, an improvement from the previous year, despite higher operating expenses. Coincheck plans to strengthen its market position in Japan as regulatory clarity improves, leveraging its leading crypto app and institutional capabilities. Full Transcript OPERATOR Good afternoon and welcome to the Coincheck Group first quarter fiscal 2027 conference call covering the quarter ended June 30, 2026.

With us today are Pascal St. Jean, Chief Executive Officer, and Jason Sandberg, Chief Financial Officer. Before Pascal and Jason begin their prepared remarks, we'd like to remind everyone that the discussion today will include several forward-looking statements, including statements about plans, goals, expectations, and aspirations of the company. Such forward-looking statements are not guarantees of future performance or success, and actual results may and often do differ materially from those expressed or implied in the forward-looking statements.

These differences may be driven by factors discussed in the company's filings with the SEC, which may be updated from time to time. The company undertakes no obligation to update its forward-looking statements except as may be required by law. Also throughout this conference call, non-IFRS financial measures may be presented or discussed. Reconciliations of these non-IFRS financial measures to their most directly comparable IFRS financial measures appear in today's earnings press release, which is available on the company's investor relations website and on the SEC website.

And finally, Coincheck Group Finance's functional currency is the Japanese yen. S. S. dollars.

Please see the company's earnings release issued earlier today for detail on how the currency translation was done. I would now like to turn the call over to your first speaker, Pascal St. Jean. You may begin.

Pascal St. Jean, Chief Executive Officer Good afternoon and thank you for joining us for our first quarter fiscal 2027 earnings call. Last quarter I laid out an evolution in how we think about the company, from a holding company with a collection of independent businesses to one unified, synergistic business serving both retail and institutional clients. In this quarter I want to show you that this is no longer just a concept, but it's actually happening.

The clearest way to see it is through our three-legged stool. Our platform stands on three connected legs: Crypto-as-a-Service, which embeds our rails inside trusted partners; Asset Management, which seeks to convert customer balances into higher-value, institutional-grade revenue; and Custody, the trust layer that underpins the whole thing. Three legs, one stool, and critically, all three are anchored to the same opportunity: to fully unlock the Japanese crypto market. Let me take you each in turn.

Our first leg is Crypto-as-a-Service, and this is where our momentum is most visible today. Our partnership with Mercari remains our first production Crypto-as-a-Service deployment. Millions of customers can now access digital assets—15 supported cryptocurrencies—directly inside a consumer marketplace app they already open every day. It's been running live since June.

This is the model working exactly as designed. Trusted partner brings the customers, and we power the flow underneath. 9% equity investment in Coincheck Group. We're now moving forward on mutual customer referrals across both ecosystems as contemplated in our business alliance agreement with KDDI that was signed in May at the time of the investment agreement.

KDDI is one of Japan's largest telecommunications companies, and its au mobile brand serves an ecosystem of nearly 40 million users, representing one of the most significant consumer on-ramps to digital assets in the country. And we recently added Credit Saison, one of Japan's most established financial institutions with a customer base of approximately 33 million. Together we intend to give Saison Card members new ways to access crypto through points and loyalty programs, integrated payments, and jointly developed products.

Because we don't compete with any of our Crypto-as-a-Service partners or businesses, they can easily plug in without handing an advantage to a rival, and every channel we add should ultimately make us more valuable. This is Crypto-as-a-Service compounding in real time. Our second leg is Asset Management, where wins have demonstrated genuine institutional leadership. In Canada, Dynamic Funds, a Scotiabank subsidiary, selected 3iQ as sub-advisor on their Dynamic Active Multi-Crypto ETF listed on Cboe Canada.

This means that a Tier 1 Canadian bank chose our institutional capability to bring crypto to their clients at scale. In Asia, 3iQ has been appointed to manage a portion of Bhutan's Bitcoin treasury. Being entrusted with a sovereign nation's reserves is a significant responsibility and one we take seriously. It is also a clear signal of our credibility.

3iQ brings to the group the kind of mandate that can open doors globally—from a Canadian bank to a sovereign initiative. These are mandates that establish us as a trusted institutional manager. It's the second leg of our stool. The third leg is Custody, and the most important development this quarter is the clarity taking shape in Japan's regulatory and market structure around institutional custody.

We think Japan is building one of the clearest institutional custody frameworks in the world for digital assets. Custody of consumer assets already sits within a well-defined regulatory structure. Now, with that said, the regulators are actively working to raise the bar following the JFSA's April 2026 policy for strengthening cybersecurity in crypto asset exchange services. An FSA commission study published this quarter is now informing revisions to the supervisory guidelines.

It's deepening the standards for key management, wallet operations, and third-party risk, and aligning them with international frameworks for institutions. This is exactly the signal they've been waiting for. Custody in Japan is becoming a more regulated, auditable, trust-bank-grade discipline. This plays directly to our strengths.

We've operated a licensed, security-first exchange in Japan since 2019. We are built around the segregation and key management standards these guidelines are raising, and we are actively working and seeking to develop the institutional-grade custody capability that lets a Japanese trust bank or qualified institutional investor engage with digital assets with confidence. As the framework crystallizes, custody shifts from a barrier to a bridge. And we intend to be on the right side of it.

With Crypto-as-a-Service driving volume, Asset Management proving our leadership, and custody clarity arriving in Japan, the platform's third leg is coming into place. Now let me explain why all three legs converge on Japan, and why the position we seek to establish in Japan should be difficult to replicate. Let's start with how things in Japan are today. Japan is one of the world's most important regulated crypto markets, but it's also a cash-heavy economy.

Nearly half of households' financial assets—over 1,100 trillion yen—still sit in cash and deposits. Government policy over two decades has been slowly pushing households from savings towards investments. That enormous pool of capital may only now be beginning to move. What's changing now is more regulatory clarity, and we think this is the primary catalyst.

Japan is moving from the Payment Services Act to the Financial Instruments and Exchange Act, the FIEA. In plain terms, this repositions crypto from a payment instrument to a financial product. It's aligned with Japan's national agenda of asset formation. Think of it as a three-stage roadmap.

Stage one is developing a path for traditional financial institutions to be able to participate through revised rules and guidelines. Stage two opens institutional product channels—spot crypto ETFs and inclusion in investment trust and fund wrappers. Stage three brings tax treatment closer to other financial assets, which will be significantly more favorable to crypto investors than the current tax rates which apply. Crucially, as lower separate tax rates make it more advantageous to trade, we would expect it to lift the trading activity and volumes across the market.

So the question is no longer whether Japan regulates crypto. It is what may open next and when. Here's why we think we win as those doors open. We've held the number one downloaded crypto app in Japan for seven consecutive years.

That's not a popularity contest. It's proof that we've cleared Japan's highest barrier to entry. And we've stayed. And we did so in a market where global majors entered and pulled back.

We built our base before the doors actually fully opened, so that when household money begins to move into crypto, the home is already there. On the institutional side, appetite is churning as well. In a recent Nomura affiliate survey, roughly 79% of Japanese institutions said they plan to invest in digital assets within three years, with diversification, not speculation, as their primary driver. The potential inflow could reach a trillion yen order.

Now connect this back to our stool. Over the next 18 months, our plan is to build and strengthen all three legs specifically to capture this unlock we're seeing unfold. Crypto-as-a-Service, together with our organic growth, should capture the retail flow as household money moves. Asset Management should capture institutional allocations as product channels open.

And Custody should capture the trust that lets Japan's regulated institutions participate. One large asset pool, three legs in. That's the deliberate sequence I described last quarter: prove the model, scale what we've proven, then expand beyond our core. And everything I've walked through today is phase one starting to become visible.

It brings me to where we go from here. We came into this year as four businesses. We're leaving this quarter closer to being one diversified platform offering. The integration of APPLO and NFTs is nearly complete, and that work has moved faster than we expected back when we set the plan in April.

This means to us that we need one unified name and brand. And so we're also working this quarter on a new name and brand for our unified platform offering that is coming together, and we expect it to be revealed and rolled out later this calendar year. To close, our three legs are all in place and all pointed at the same goal. Crypto-as-a-Service is compounding across trusted partners today.

Asset Management is winning institutional mandates from Canada to Bhutan. And on Custody, Japan's regulatory and structural framework is maturing in exactly the direction that favors a licensed, security-first operator like us. Japan's regulatory arc is moving in our favor, and we cleared the initial barrier to entry years ago. I'm confident in the strategy, excited about the opportunity ahead, and committed to delivering value to our shareholders as we build Coincheck Group into the global platform of choice for digital finance.

With that, I'll turn it over to Jason, our CFO, for a review of our financial results. Thank you. Jason Sandberg, Chief Financial Officer Thank you, Pascal. Let me take you through our first quarter fiscal 2027 performance.

I will start with some year-over-year comparisons. 3 billion yen, or 703 million USD in the first quarter of fiscal 2027, up from 84 billion yen or 517 million USD in the first quarter of fiscal 2026. Growth was primarily driven by increases in transaction revenue, specifically institutional revenue and revenue from covered counterparty transactions. 445 billion yen or 15 million USD in the first quarter of fiscal 2026.

5 million USD, both of which related to having a full quarter of the 3iQ-related staking and investment management fee revenue. 152 billion USD as of June 30, 2025. Customer assets decreased due primarily to the decline in the market price of certain crypto assets, including Bitcoin, Ethereum, and XRP. 5 billion yen, or 649 million USD as of June 30, 2026, compared to 0 yen as of June 30, 2025.

This increase reflects the AUM added to our acquisition of 3iQ, which closed effective March 1, 2026. 5 billion yen or 378 million USD in the first quarter of fiscal 2026. Please note that fluctuations in marketplace trading volume are usually driven by crypto asset industry market volumes and conditions generally, and the size and level of trading activity at Coincheck Group specifically, as well as market price fluctuations in the crypto assets frequently traded. 5 million USD in the first quarter of fiscal 2026.

The improvement in net loss was driven primarily by a decrease in the loss from the change in fair value of the warrant liability and a net tax benefit in the first quarter of fiscal 2027 compared to a tax expense in the first quarter of fiscal 2026, partially offset by an increase in operating loss due primarily to an increase in selling, general, and administrative expenses. 4 million USD in the first quarter of fiscal 2026. The increase in this loss related primarily to the increase in our selling, general, and administrative expenses, partially offset by an increase in adjusted revenue. Let's now move on to our operating expenses.

6 billion yen or 22 million USD in the first quarter of fiscal 2026. A majority of this increase relates to a full quarter of 3iQ's operational results versus the prior year. 9 million USD. In summary, we remain focused on executing on our three-legged stool strategy: growing crypto-as-a-service partnerships with our retail business, winning new asset management mandates globally, and developing solutions for Japan's evolving regulatory landscape.

Together, these efforts position us well to grow platform assets and capitalize on opportunities in Japan and globally. With that, operator, please open the line for Q&A. OPERATOR Thank you. If you would like to ask a question, please press the star and one on your keypad.

To leave the queue at any time, press star two. Once again, that is star and one to ask a question, and we'll pause for just a moment to allow everyone a chance to join the queue. And we'll take our first question from Ed Ingle with Compass Point. Please go ahead.

Ed Ingle, Analyst at Compass Point Hi, thanks for taking my question and congrats on all these recent partnerships. I guess just given a lot of these recent partnerships have kind of been more focused on the exchange business, I was wondering if there's any active discussions within the asset management business and partnerships in Japan and I guess within any asset management partnership opportunities in Japan, would that just be related to ETFs or could there potentially be some trust structure that you could potentially launch with the partner even before ETFs? Pascal St. Jean, Chief Executive Officer Yes, thank you, Ed, for the question.

So there have been some deals outside Japan signed this quarter that are not publicly announced. We announced Bhutan as one, and there'll be a lot more announcements linked to that in terms of what that roadmap looks like. But there have been some distribution channels signed in Switzerland, as well as increased distribution in Canada and Abu Dhabi.